While Korean brands have been present in Malaysia since the 1990s, the automakers have generally kept their distance and left the management and marketing of their products to their local partners. It could have been that the volumes were not sufficiently large to warrant setting up their own subsidiaries or, in earlier years, government policy did not allow foreign automakers to have full ownership of their subsidiaries (this changed in the late 1990s).
Now Hyundai Motor Company will become directly involved in its business in Malaysia with the establishment of Hyundai Motor Malaysia (HMY). This changes the decades-long arrangement from a distributor-led model under Sime Motors to a principal-led operational approach.
The move suggests that Hyundai Motor sees Malaysia as being of strategic importance to its brand’s future, hence the need to take the ‘driver’s seat’, assuming full responsibility for brand, marketing, sales, and customer experience. With direct involvement, it will be able to make market-relevant decisions as it will have its own team directly interacting with the market.
This approach has been applied by other global automakers operating in Malaysia and it has been evident that when the automaker is directly involved, the business activities move to a new level. The product range is expanded and some companies start to make significant investments to broaden their local business scope, not to mention using Malaysia as a regional base. Customers also benefit as the automaker is right here in the market and can more closely understand their issues as well as provide them support.
Ultimately, as the owner of the brand, the automaker would be willing to spend as much as it takes to ensure success and growth, whereas a local partner may limit its commitment. This is because history has shown that, in many cases, local partners may eventually lose their leading role as the principal takes over.
HMY says that the move is part of Hyundai Motor’s broader global strategy to strengthen ties in key growth markets in line with its brand vision to drive Progress for Humanity. “Hyundai has always stood for progress — not just in mobility, but in how we connect with people, communities, and the future. Our founder’s belief in betterment and sustainable action continues to inspire us as we grow our global footprint,” said Eric Lee, President of Hyundai Motor Malaysia.
“With the establishment of Hyundai Motor Malaysia, we are bringing the strength and agility of a global brand closer to home. This isn’t just a new chapter — it’s a long-term commitment to Malaysia as a strategic hub in ASEAN. Backed by innovation, vertical integration, and purpose-driven growth, we look forward to building with our partners, serving our customers, and contributing meaningfully to Malaysia’s economy,” he said.
In the near term, HMY will introduce 3 new models in the SUV and MPV categories. Inokom, owned by Sime Motors, will continue to provide contract assembly services at its plant in Kedah. There are 7 locally-assembled models planned over the next 5 years. In the medium-term, 30% of production is targeted for export to other markets in the region.
In line with the country’s sustainability aspirations, the models will initially have hybrid electric powertrains with some also having internal combustion engines. Fully electric models have not been mentioned at this time and will probably be left to the Hyundai Motor Group Innovation Centre in Singapore (HMGICS). This facility has been assembling the IONIQ 5 and 6 EV models and will also assemble the KONA Electric.
As Hyundai embarks on a new journey in Malaysia, Sime Motors, its local partner since 2004, will continue the relationship and be part of the Hyundai dealer network. “We are proud to have played a pivotal role in Hyundai’s growth in Malaysia. As Hyundai Motor embarks on its next phase, we remain committed to supporting its sales and aftersales operations — ensuring continuity, confidence, and a seamless service experience for existing and future Hyundai customers,” said Jeffrey Gan, Managing Director of Sime Motors, Southeast Asia
HMY will make key improvements across its network which will expand to 25 outlets by 2030. As it is just established, it invites existing owners of Hyundai vehicles to provide their contact details so that they can be kept informed of important updates, service reminders, software updates, maintenance campaigns, future ownership benefits and recall notices. To register your details, click here.
Hyundai Motor in Malaysia
Although Hyundai Motor Company began its global activities from the mid-1970s when it had developed South Korea’s first mass-produced car – the Pony – for exports, it didn’t appear in the Malaysian market till the early 1990s.
A small company called Hyumal handled the brand and although there were plans to assemble the Sonata (then in its second generation) at the Tan Chong plant, this never materialised. However, later on, Hyumal did begin assembling some small models such as the Atos, Getz and Matrix at the Inokom plant.
Hyumal Motor, together with Hyundai Berjaya, held the franchise into the early 2000s. While Hyumal focussed on the imported CBU models, local assembly of two models (the Elantra and fourth generation Sonata)was also assigned to Oriental Assemblers and distribution was given to Kah Bintang, a subsidiary of the Oriental Group better known for its association with Honda.
In 2004, Sime Darby Motors acquired Hyumal Motor Sdn Bhd and Hyundai Berjaya to take over the Hyundai franchise. Five years later, it also acquired the 60% equity in Oriental Hyundai to complete its control of the brand which was marketed by Hyundai-Sime Darby Motors. As it had also acquired Inokom by then, assembly of Hyundai models could continue.
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